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Debt Collection Practices Act (FDCPA)

Financial resources occasionally of some individuals are in a bad shape and to meet the urgent requirements the needy persons approach different agencies to fill the gap in their shortfall of funds and procure funds under a state of compulsion ignoring the reputation of the financial institution.

This is a short term arrangement sacrificing the option to get funds from an agency with lower interest rates. Such a hasty and irresponsible act of the debtor can be a source of unseen problems in the future at the time of repayment of the debt. The default is very severely dealt with higher penalties and other drastic measures adopted by these financial institutions to recover their defaulting debt.

There are many instances of harassing the debtors by the debt recovery agents working for such financial institutions.

To stop the harassment of the debtors at the hands of financial institutions collecting agencies, there is a legal provision, which protects the interest of rightful original creditors and not the collecting agencies or their attorneys, to play their dirty part in recovering the debt amount, as provided by Debt Collection Practices Act (FDCPA). The debts enjoying such a protection pertain to personal and family debts, debts for buying vehicles and to meet expenses required for availing health services.

As provided under protection, the collector should make a contact with the debtor through phone, mail, or personally at a reasonable time and place with a previous permission and confirmation from the debtor. The debtor through this notice is afforded an opportunity to accept this debt or deny as the case may be and action the debtor considers necessary in response to the notice. The collector is bound by the privacy terms not to disclose the matter to any unconcerned person or agency.

In case you have notified an attorney authorized in your behalf, he is supposed to route all the contacts through your attorney.

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